TO BE INTRODUCED IN LOK SABHA

Bill No. 56 of 2010

THE PROHIBITION OF UNFAIR PRACTICES IN TECHNICAL EDUCATIONAL

INSTITUTIONS, MEDICAL EDUCATIONAL INSTITUTIONS
AND UNIVERSITIES BILL, 2010
————
ARRANGEMENT OF CLAUSES
————
CHAPTER I
PRELIMINARY
CLAUSES
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
CONDUCTING TEST FOR ADMISSION, PUBLICATION OF PROSPECTUS AND
PROHIBITION OF COLLECTION OF CAPITATION FEE, ETC .

3. Prohibition of accepting admission fee and other fees and charges without receipt.
4. Prohibition of admission without specified admission tests or inter se merit for selection
of students.
5. Mandatory publication of prospectus, its contents and its pricing.
6. Prohibition of capitation fee.
7. Prohibition on refusal to, return, or, withholding degree, diploma, or, refund of fee,
etc.
8. Prohibition of advertisements not based on facts or misleading.
CHAPTER III
IMPOSITION OF MONETARY PENALTIES

9. Penalty for doing contrary to information in prospectus.

10. Penalty for demanding or accepting capitation fee.
11. Penalty for refusal to return or withholding documents.
12. Penalty for false or misleading advertisement.
13. Penalty for untrue advertisement.
14. Penalty for which no specific provision is made under the Act.
15. Confiscation of capitation fee, etc.
16. Adjudication of penalty.
CHAPTER IV
OFFENCES
17. Offences.
18. Cognizance of offences.
 (ii)

CLAUSES
19. Offences to be non-cognizable.
20. Offences by societies or trusts.
21. Offences by institution.
CHAPTER V
MISCELLANEOUS
22. Bar of jurisdiction.
23. Burden of proof.
24. Power to call for information.
25. Crediting sums realised by way of penalties to Consolidated Fund of India.
26. Non-applicability of this Act to minority institutions in certain cases.
27. Power of Central Government to make rules.
28. Rules to be laid before Parliament.
29. Protection of action taken in good faith.
30. Application of other laws not barred.
31. Power to remove difficulties.
 1
TO BE INTRODUCED IN LOK SABHA

Bill No. 56 of 2010

THE PROHIBITION OF UNFAIR PRACTICES IN TECHNICAL EDUCATIONAL

INSTITUTIONS, MEDICAL EDUCATIONAL INSTITUTIONS AND
UNIVERSITIES BILL, 2010
A

BILL
to provide for the prohibition of certain unfair practices in technical educational
institutions, medical educational institutions and universities and to protect
interests of students admitted or seeking admission therein and to provide for
matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Prohibition of Unfair Practices in Technical Educational Short title,
Institutions, Medical Educational Institutions and Universities Act, 2010. extent and
commencement.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint; and different dates may be appointed for different provisions
of this Act and for different States, and any reference to commencement in any provision of
this Act in relation to any State shall be construed as a reference to the commencement of
that provision in that State.
 2
Definitions. 2. (1) In this Act, unless the context otherwise requires,—
(a) "admission test" means competitive admission test referred to in section 4;
(b) "advertisement" means any document described or issued as advertisement
through any form of media and includes any notice, circular or other documents inviting
persons domiciled in India for admission to technical educational institutions, medical
educational institutions and universities within or outside the territory of India;
(c) "appropriate statutory authority" means any authority established under
any law for the time being in force for co-ordinating or determining or maintaining the
standards of higher education for technical education, medical education and education
in universities;
(d) "capitation fee" means any amount, (by whatever name called),—
(i) demanded or charged or collected, directly or indirectly, for, or, on
behalf of any institution, or paid by any person in consideration for admitting
any person as student in such institution; and which is in excess of the fee
payable towards tuition fee and other fees and other charges declared by any
institution in its prospectus for admitting any person as student in such
institution; or
(ii) paid or demanded or charged or collected, by way of donation, for, or,
on behalf of any institution, or paid by any person in consideration for admitting
any person as a student in such institution;
(e) "institution" means a technical educational institution or medical educational
institution or any such institution registered under the Societies Registration Act,
1860 and recognised as such by the appropriate statutory authority or a university as 21 of 1860.
defined in section 2 of the University Grants Commission Act, 1956 and includes an 3 of 1956.
institution deemed to be a university under section 3 of that Act or under any other law
for the time being in force;
(f) "National Educational Tribunal" means the National Educational Tribunal
established under the Educational Tribunals Act, 2010;
(g) "notification" means a notification published in the Official Gazette and the
expression "notify" with its cognate meanings and grammatical variations shall be
construed accordingly;
(h) "prescribed" means prescribed by rules made by the Central Government
under this Act;
(i) "prospectus" includes any publication, whether in print or otherwise, issued
for providing fair and transparent information, relating to an institution, to the general
public (including to those seeking admission in such institution) by the management
of such institution or any authority or person authorised by such institution to do so;
(j) "State" means a State specified in the First Schedule to the Constitution and
shall include a Union territory;
(k) "State Educational Tribunal" means the State Educational Tribunal established
under the Educational Tribunals Act, 2010;
(l) "State Government",—
(i) in relation to an institution situated in one state, means the State
Government of that State;
(ii) in relation to an institution situated in more than one State, means the
State Government of a State in which the main campus of such institution is
situated.
 3
(2) Words and expressions used in this Act and not defined but defined in the University
3 of 1956. Grants Commission Act, 1956 shall have the meanings respectively assigned to them in that
Act.
CHAPTER II
CONDUCTING TESTS FOR ADMISSION, PUBLICATION OF PROSPECTUS AND
PROHIBITION OF COLLECTION OF CAPITATION FEE, ETC.

3. (1) No institution shall, for admission in respect of any seat in any course or Prohibition
programme of study conducted in such institution, accept any payment towards admission of accepting
admission fee
fee and other fees and charges,—
and other fees
(a) other than such fee or charges for such admission as declared by it in the and charges
without
prospectus for admission against any such seat; and receipt.
(b) without a proper receipt in writing issued for such payment to the concerned
student so admitted in such institution.
(2) No institution shall charge any fee for an admission test other than an amount
representing the reasonable cost incurred by it in conducting such test.
4. (1) In case the appropriate statutory authority has specified the process of selection Prohibition
for admission to any course or programme of study in any institution which includes of admission
conducting competitive admission test for ascertaining the competence of any person to without
specified
pursue such course or programme of study, in that case, no person shall be admitted to such admission
course or programme of study in such institution, except through an admission test conducted tests or inter
by,— se merit for
selection of
(a) a body as may be notified under this Act by the appropriate authority for students.
conducting such admission tests; or
(b) such institution or a group of institutions if such institution or group of
institutions have been so authorised by the Central Government or a State Government
or any appropriate authority or by any other authority so authorised and notified to
conduct such test.
(2) In case the process of selection for admission to any course or programme of study
in any institution including conducting competitive admission test has not been specified
under sub-section (1), in that case, no person shall be eligible for admission to such course
or programme of study in such institution except through inter se merit to be specified in the
prospectus of each institution.
(3) Every institution referred to in sub-sections (1) and (2) shall,—
(a) maintain the records of the entire process of selection of students including
answer sheets of the competitive admission test conducted in respect of the admission
of each student;
(b) exhibit such records in its website ;
(c) be liable to produce such record, whenever called upon to do so by the
appropriate statutory authority under this Act or any other law for the time being in
force:
Provided that the records under this clause shall be maintained for a period of one year
reckoned from the date of completion of the admission test subject to the condition that
where the admission has been questioned in any court of law or tribunal, the records shall be
maintained for such period as the court or tribunal may deem fit.
5. (1) Every institution, shall publish, before expiry of sixty days prior the date of the Mandatory
commencement of admission to any of its courses or programmes of study, a prospectus publication of
prospectus,
containing the following for the purposes of informing those persons intending to seek its contents
admission to such institution and the general public, namely:— and its
pricing.
 4
(i) each component of the fee, deposits and other charges payable by the students
admitted to such institution for pursuing a course or programme of study, and the
other terms and conditions of such payment;
(ii) the percentage of tuition fee and other charges refundable to a student
admitted in such institution in case such student withdraws from such institution
before or after completion of course or programme of study and the time within, and
the manner in, which such refund shall be made to that student;
(iii) the number of seats approved by the appropriate statutory authority in
respect of each course or programme of study for the academic year for which admission
is proposed to be made;
(iv) the conditions of eligibility including the minimum and maximum age limit of
persons for admission as a student in a particular course or programme of study, where
so specified by the institution;
(v) the educational qualifications specified by the relevant appropriate statutory
authority, or by the institution, where no such qualifying standards have been specified
by any statutory authority;
(vi) the process of admission and selection of eligible candidates applying for
such admission, including all relevant information in regard to the details of test or
examination for selecting such candidates for admission to each course or programme
of study and the amount of fee to be paid for the admission test;
(vii) details of the teaching faculty, including therein the educational
qualifications and teaching experience of every member of its teaching faculty and
also indicating therein whether such members are on regular basis or as visiting member;
(viii) the minimum pay and other emoluments payable for each category of
teachers and other employees;
(ix) information in regard to physical and academic infrastructure and other
facilities including hostel accommodation, library and hospital or industry wherein the
practical training to be imparted to the students and in particular the facilities accessible
by students on being admitted to the institution;
(x) broad outlines of the syllabus specified by the appropriate statutory authority
or by the institution, as the case may be, for every course or programme of study,
including the teaching hours, practical sessions and other assignments;
(xi) all relevant instructions in regard to maintaining the discipline by students
within or outside the campus of the institution, and, in particular such discipline
relating to the prohibition of ragging of any student or students and the consequences
thereof and for violating the provisions of any regulation in this behalf made under the
University Grants Commission Act, 1956 or any other law for the time being in force. 3 of 1956.

(xii) any such other information which may be prescribed:

Provided that an institution shall publish information referred to in items (i) to (xii) of
this sub-section, on its website, and the attention of prospective students and the general
public shall be drawn to such publication on the website through advertisements displayed
prominently in the different newspapers and through other media:
Provided further that an institution may publish prospectus in accordance with this
section at any time before the period of sixty days specified under this sub-section (1).
(2) Every institution shall fix the price of each printed copy of the prospectus, being
not more than the reasonable cost of its publication and distribution and no profit be made
out of the publication, distribution or sale of prospectus.
 5
6. (1) No institution shall, directly or indirectly, demand or charge or accept, capitation Prohibition of
fee or demand any donation, by way of consideration for admission to any seat or seats in a capitation fee.
course or programme of study conducted by it.
(2) No person shall, directly or indirectly, offer or pay capitation fee or give any
donation, by way of consideration either in cash or kind or otherwise, for obtaining admission
to any seat or seats in a course or programme of study in any institution.
7. (1) No institution, who has in its possession or custody, of any document in the Prohibition on
form of certificates of degree, diploma or any other award or other document deposited with refusal to,
return, or,
it by a person for the purpose of seeking admission in such institution, shall refuse to return
withholding
such degree, certificate, award or document to that person or withhold such degree, certificate degree,
award or other document with a view to induce or compel such person to pay any fee or fees diploma, or,
in respect of any course or programme of study which such person does not intend to refund of fee,
etc.
pursue or avail any facility in such institution.
(2) In case a student, after having admitted to an institution, for pursuing any course
or programme of study in such institution, subsequently withdraws from such institution, no
institution in that case shall refuse to refund such percentage of fee deposited by such
student and within such time as has been mentioned in the prospectus of such institution.
8. No institution shall, issue or publish,— Prohibition of
advertisements
(a) any advertisement for inducing students for taking admission in the not based on
institution, claiming to being recognised by the appropriate statutory authority where facts or
misleading.
it is not so recognised; or
(b) any information, through advertisement or otherwise, in respect of its
infrastructure or academic facilities or of its faculty or standard of instruction or academic
or research performance, which the institution, or, person authorised to issue such
advertisement on behalf of the institution, knows to be false or not based on facts or
to be misleading.
CHAPTER III
IMPOSITION OF MONETARY PENALTIES

9. Any institution, which knowingly does anything contrary to the information Penalty for
published by it in its prospectus in violation of the provisions of section 5, shall, without doing
contrary to
prejudice to any proceedings for prosecution under the provisions of this Act or any other
information
law for the time being in force, be liable to a penalty which may extend to fifty lakh rupees. in prospectus.
10. Any institution, which demands or accepts capitation fee or donation, in any Penalty for
manner whatsoever, in violation of the provisions of section 6, shall, without prejudice to demanding or
accepting
proceedings for prosecution under the provisions of this Act or any other law for the time
capitation
being in force, be liable to a penalty which may extend to fifty lakh rupees. fee.
11. Any institution, which refuses to return any degree, certificate, award or any other Penalty for
document or withholds such degree, certificate, award or any other document without having refusal to
return or
sufficient cause to do so, or fails to refund the fees in violation of the provisions of section withholding
7, shall, without prejudice to proceedings for prosecution under the provisions of this Act or documents.
any other law for the time being in force, be liable to a penalty which may extend to one lakh
rupees.
12. Any institution, which publishes any advertisement, which is false or misleading, Penalty for
and in violation of the provisions of section 8, shall, without prejudice to proceedings for false or
prosecution under the provisions of this Act or any other law for the time being in force, be misleading
advertisement.
liable to a penalty which may extend to fifty lakh rupees.
13. Where an advertisement issued, after commencement of this Act, in violation of Penalty for
the provisions of section 8, includes any untrue statement or falsely describes any fact or is untrue
advertisement.
misleading, every person who authorised the issue of such advertisement shall, without
 6
prejudice to proceeding under the provisions of this Act or any other law for the time being
in force, be liable to a penalty which may extend to fifty lakh rupees.
Penalty for 14. Whoever, commits an offence under this Act for which no penalty has been
which no specified elsewhere other than under this Chapter, shall, without prejudice to proceedings
specific for prosecution under the provisions of this Act or any other law for the time being in force,
provision is
made under be liable to a penalty which may extend to five lakh rupees and in the case of a society or
the Act. trust, with a penalty which may extend to ten lakhs rupees.
Confiscation 15. (1) Any capitation fee or donation or any other charges collected in contravention
of capitation of the provisions of this Act, shall, without prejudice to the proceedings for prosecution or
fee, etc.
imposition of penalty under the provisions of this Act or any other law for the time being in
force, be liable to be confiscated, by an order made by the concerned State Educational
Tribunal or the National Educational Tribunal, as the case may be.
(2) The capitation fee or donation or any other charge confiscated shall be dealt in
such manner as may be prescribed.
Adjudication 16. Save as otherwise provided in this Act, all the matters (including the penalties
of penalty. leviable under this Chapter) shall be adjudicated by the concerned State Educational Tribunal
or the National Educational Tribunal, as the case may be.
CHAPTER IV
OFFENCES
Offences. 17. (1) Without prejudice to any award of penalty by the State Educational Tribunal or
the National Educational Tribunal under this Act, if any person contravenes or attempts to
contravene or abets the contravention of the provisions of this Act or of any rules made
thereunder, he shall be punishable with imprisonment for a term which may extend to three
years, or with fine, or with both.
(2) If any person fails to pay the penalty imposed by the State Educational Tribunal or
the National Educational Tribunal or fails to comply with any of its directions or orders, he
shall be punishable with imprisonment for a term which shall not be less than one month but
which may extend to three years or with fine which shall not be less than fifty thousand
rupees but which may extend to five lakh rupees, or with both.
Cognizance of 18. (1) No court shall take cognizance of any offence under this Act which is alleged
offences. to have been committed by any institution or director, manager, secretary or other officer
thereof, except on the complaint in writing of such person authorised by the Central
Government or the State Government in that behalf or by such person authorised by the
concerned appropriate statutory authority, as may be prescribed.
(2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the
first class shall try any offence punishable under this Act.
Offences to 19. (1) Every offence under section 6 of this Act shall be deemed as cognizable within
be non- the meaning of the Code of Criminal Procedure, 1973. 2 of 1974.
cognizable.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, 2 of 1974.
every offence, under this Act (other than an offence under section 6), shall be deemed to be
non-cognizable within the meaning of the said Code.
Offences by 20. (1) Where an offence under this Act has been committed by a society or trust,
societies or every person who at the time the offence was committed was in charge of, and was responsible
trusts.
to, the society or trust for the conduct of the business of the society or the trust, as well as
the society or trust, shall be deemed to be guilty of the offence and be liable to be proceeded
against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment provided in this Act, if he proves that the offence was committed
 7
without his knowledge or that he exercised all due diligence to prevent the commission of
such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under
this Act has been committed by a society or trust and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to, any neglect on the part of
any director, manager, secretary, trustee or other officer of the society or trust, such director,
manager, secretary, trustee or other officer shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.
Explanation.— For the purpose of this section—
(a) "society" means any body corporate registered under the Societies
21 of 1860. Registration Act, 1860 and, "trust" means any body registered under the Indian Trusts
2 of 1882. Act, 1882 or any other law for the time being in force;
(b) "director", in relation to a society or trust, means a member of its governing
board other than an exofficio member representing the interests of the Central or State
Government or the appropriate statutory authority.
21. (1) Where an offence under this Act has been committed by an institution, every Offences by
person who at the time the offence was committed was in charge of, and was responsible to, institution.
the institution for the conduct of the business of the institution, as well as the institution,
shall be deemed to be guilty of the offence and be liable to be proceeded against and
punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment provided in this Act, if he proves that the offence was committed
without his knowledge or that he exercised all due diligence to prevent the commission of
such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under
this Act has been committed by an institution and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to, any neglect on the part of
any governor, chancellor, director, trustee, manager, secretary or other officer of such
institution, such governor, chancellor, director, trustee, manager, secretary or other officer
shall also be deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
CHAPTER V
MISCELLANEOUS
22. No court shall have jurisdiction to entertain any dispute or proceeding in respect Bar of
of any matter which the State Educational Tribunal or the National Educational Tribunal is jurisdiction.
empowered by or under this Act to determine, and no injunction shall be granted by any
court or other authority in respect of any action taken or to be taken in pursuance of any
power conferred by or under this Act.
23. When an institution is accused of having committed an offence under section 8, Burden of
the burden of proving that such institution has not committed such offence, shall be on the proof.
institution.
24. Notwithstanding anything contained in any other law for the time being in force, Power to call
the Central Government or a State Government, as the case may be, and the appropriate for
information.
statutory authority may, by a general or special order, call upon any technical educational
institution or medical educational institution or university to furnish to that Government or
the appropriate statutory authority, as the case may be, periodically or as and when required
any information concerning the activities carried on by the institution or university as may
be prescribed to enable that Government or the appropriate statutory authority, as the case
may be, to carry out the purposes of this Act.
 8
Crediting sums 25. All sums realised by way of penalties under this Act shall be credited to the
realised by way Consolidated Fund of India.
of penalties to
Consolidated
Fund of India.
Non- 26. Nothing contained in this Act or the rules made there under shall affect the right of
applicability the minorities to establish and administer educational institutions of their choice.
of this Act to
minority
institutions in
certain cases.

Power of 27. (1) The Central Government may, by notification in the Official Gazette, make rules
Central for carrying out the provisions of this Act.
Government
to make rules. (2) In particular, and without prejudice to the generality of the foregoing power, such
rules may provide for all or any of the following matters, namely:—
(a) any such other information to be contained in the prospectus under clause
(xii) of section 5;
(b) the manner in which capitation fee or donation or other charges confiscated
shall be dealt with under sub-section (2) of section 15;
(c) the persons authorise to file a complaint, before a court in respect of an
offence under this Act on behalf of the Central Government or State Government or
concerned appropriate statutory authority, under sub-section (1) of section 18;
(d) the information concerning the activities carried on by the technical
educational institution or medical educational institution or university to be furnished
periodically or as and when required by the Central or a State Government or appropriate
statutory authority under section 24;
(e) any other matter which is to be or may be, prescribed or in respect of which
provision is to be made by the Central Government by rules.
Rules to be 28. Every rule made under this Act shall be laid, as soon as may be after it is made,
laid before before each House of Parliament, while it is in session, for a total period of thirty days which
Parliament.
may be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such modified form or be of
no effect, as the case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule.
Protection of 29. No suit or other legal proceedings shall be instituted against the Government or
action taken in any officer or authority or person exercising powers or discharging functions under this Act
good faith.
for anything which is in good faith done or intended to be done in pursuance of this Act or
the rules or directions issued thereunder.
Application of 30. The provisions of this Act shall be in addition to, and not in derogation of, the
other laws not provisions of any other law for the time being in force.
barred.

Power to 31. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central
remove Government may, by order published in the Official Gazette, make such provisions not
difficulties. inconsistent with the provisions of this Act, as may appear to be necessary for removing the
difficulty:
Provided that no order shall be made under this section after the expiry of the period of
three years from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made,
before each House of Parliament.
 STATEMENT OF OBJECTS AND REASONS

There has been an unprecedented growth in higher education in recent years, of which
the growth of higher professional education, especially technical and medical education has
been mainly through private participation. The current national policy supported by several
judicial pronouncements is against commercialization of higher education, though the policy
encourages private 'not-for-profit' participation with surplus revenues to be ploughed back
for growth and development of institutions.
2. There is public concern that technical and medical educational institutions, and
universities should not resort to unfair practices, such as charging of capitation fee and
demanding donations for admitting students, not issuing receipts in respect of payments
made by or on behalf of students, admission to professional programmes of study through
non-transparent and questionable admission processes, low quality delivery of education
services and false claims of quality of such services through misleading advertisements,
engagement of unqualified or ineligible teaching faculty, forcible withholding of certificates
and other documents of students.
3. Prompt and effective deterrent action is constrained in the absence of any Central
law prohibiting capitation fee and other unfair practices. While the current policy in higher
education is to promote autonomy of institutions, adoption of unfair practices by misusing
autonomy would be disastrous for the credibility of the higher education sector. It would be
in public interest to balance autonomy of higher education institutions with measures to
protect the interests of students and others accessing higher education.
4. It is, therefore, proposed to provide for the matter specified in the preceding para-
graph in the Prohibition of Unfair Practices in Technical Educational Institutions, Medical
Educational Institutions and Universities Bill, 2010 which, inter alia, provides for¯
(a) prohibition of accepting admission fee and other fees and charges other than
such fee or charges for such admission as declared by the institution in the prospectus
for admission against any seat and without a proper receipt in writing issued for such
payment to the concerned student so admitted in the institution;
(b) prohibition of admission without specified admission test for selection of the
students where such test is required to be conducted as per appropriate statutory
authority;
(c) mandatory publication of prospectus, its contents and its pricing;
(d) prohibition of demanding or charging or accepting, directly or indirectly,
capitation fee or demand by donation, by way of consideration for admission to any
seat or seats in course or programme of study, by the institutions;
(e) prohibition on refusal to return or withholding degree, diploma, or other
documents deposited with the institution or refund of fee, if the student withdraws
from the institution;
(f) prohibition of advertisement not based on facts or misleading;
(g) imposition of monetary penalty up to fifty lakh rupees for doing contrary to
information in prospectus, demanding or accepting capitation fee and publishing false
or misleading advertisement or untrue advertisement and penalty up to one lakh rupees
for refusal or withholding documents; confiscation of capitation fee or donation or
any other charges collected in contravention of the provisions of the proposed
legislation by the State Educational Tribunal and the National Education Tribunal
(proposed to be established under the Educational proposed Tribunals Act, 2010).

9
 10
5. Clause 26 of the Bill provides that the proposed legislation shall not affect the right
of the minorities to establish and administer educational institution of their choice.
6. The notes on clauses explain in detail the various provisions contained in the Bill.
7. The Bill seeks to achieve the above objectives.

KAPIL SIBAL
NEW DELHI;
The 19th April, 2010.
 Notes on clauses
Clause 2.— This clause defines various expressions used in the proposed legislation.
It inter alia defines expressions "admission test", "advertisement", "appropriate statutory
authority", "capitation fee", "institution", "National Educational Tribunal", "prospectus",
and "State Educational Tribunal" used in the proposal legislation.
Clause 3.— This clause makes prohibition of accepting admission fee and other fees
and charges without receipt. It provides that no institution shall, for admission in respect of
any seat in any course or programme of study conducted in such institution, accept any
payment towards admission fee and other fees and charges other than such fee or charges
for such admission as declared by it in the prospectus for admission against any such seat
and without a proper receipt in writing issued for such payment to the concerned student so
admitted in such institution. It further provides that no institution shall charge any fee for an
admission test other than an amount representing the reasonable cost incurred by it in
conducting such test.
Clause 4.—This clause makes prohibition of admission without specified admission
tests or inter se merit for selection of students. It provides that in case the appropriate
statutory authority has specified the process of selection for admission to any course or
programme of study in any institution which includes conducting competitive admission
test for ascertaining the competence of any person to pursue such course or programme of
study, in that case, no person shall be admitted to such course or programme of study in
such institution, except through an admission test conducted by a body as may be notified
under the proposed legislation by the appropriate authority for conducting such admission
tests or such institution or a group of institutions if such institution or group of institutions
have been so authorised by the Central Government or a State Government or any appropriate
authority or by any other authority so authorised and notified to conduct such test.
It further provides that in case the process of selection for admission to any course or
programme of study in any institution including conducting competitive admission test has
not been specified under sub-clause (1) of this clause, in that case, no person shall be eligible
for admission to such course or programme of study in such institution except through inter
se merit to be specified in the prospectus of each institution. It also imposes a duty on every
institution to maintain the records of the entire process of selection of students; exhibit such
records in its website and produce such record, whenever called upon to do so by the
appropriate statutory authority. The records under this clause shall be maintained for a
period of one year or if it has been questioned in any court or tribunal, then, for such period
the said court or tribunal may direct.
Clause 5.— This clause makes mandatory the publication of prospectus, its contents
and its pricing. It provides that every institution shall publish, before expiry of sixty days
prior to the date of the commencement of admission to any of its courses or programmes of
study, a prospectus containing the details specified in items (i) to (xii) for the purposes of
informing to those persons intending to seek admission to such institution and the general
public.
It further provides that every institution shall fix the price of each printed copy of the
prospectus, being not more than the reasonable cost of its publication and distribution and
no profit be made out of the publication, distribution or sale of prospectus.
Clause 6.— This clause prohibits the capitation fee and donations, etc. It provides
that no institution shall, directly or indirectly, demand or charge or accept, capitation fee or
demand any donation, by way of consideration for admission to any seat or seats in a course
or programme of study conducted by it. It further provides that no person shall, directly or
indirectly, offer or pay capitation fee or give any donation, by way of consideration either in
cash or kind or otherwise, for obtaining admission to any seat or seats in a course or
programme of study in any institution.

11
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Clause 7.— This clause makes prohibition on refusal to, return, or, withholding degree,
diploma, or, refund of fee, etc. It provides that no institution, who has in its possession or
custody, of any document in the form of certificates of degree, diploma or any other award or
other document deposited with it by a person for the purpose of seeking admission in such
institution, shall refuse to return such degree, certificate, award or document to that person
or withhold such degree, certificate award or other document with a view to induce or compel
such person to pay any fee or fees in respect of any course or programme of study which
such person does not intend to pursue or avail any facility in such institution.
It further provides that in case a student subsequently withdraws from such institution,
no institution in that case shall refuse to refund such percentage of fee deposited by such
student and within such time as has been mentioned in the prospectus of such institution.
Clause 8.— This clause makes prohibition of advertisements not based on facts or
misleading. It provides that no institution shall issue or publish any advertisement for inducing
students for taking admission in the institution, claiming to being recognised by the
appropriate statutory authority where it is not so recognised or any information, in respect of
its infrastructure or academic facilities or of its faculty or standard of instruction or academic
or research performance, which the institution, or, person authorised to issue such
advertisement on behalf of the institution, knows to be false or not based on facts or to be
misleading.
Clause 9.— This clause provides that any institution which knowingly does anything
contrary to the information published by it in its prospectus in violation of the provisions of
clause 5 shall be liable to a penalty which may extend to fifty lakh rupees, without prejudice
to proceedings for prosecution under the provisions of the proposed legislation or any other
law for the time being in force.
Clause 10.— This clause provides that if any institution for demands or accepts
capitation fee or donation, in any manner whatsoever, in violation of the provisions of clause
6 shall be liable to a penalty which may extend to fifty lakh rupees, without prejudice to
proceedings for prosecution under the provisions of the proposed legislation or any other
law for the time being in force.
Clause 11.— This clause provides that any institution, which refuses to return any
degree, certificate, award or any other document or withholds such degree, certificate, award
or any other document without having sufficient cause to do so, or fails to refund the fees in
violation of the provisions of clause 7 shall be liable to a penalty which may extend to one
lakh rupees, without prejudice to proceedings for prosecution under the provisions of the
proposed legislation or any other law for the time being in force.
Clause 12.— This clause provides that any institution which publishes any
advertisement which is false or misleading and in violation of the provisions of clause 8. a
penalty which may extend to fifty lakh rupees, without prejudice to proceedings for prosecution
under the provisions of the proposed legislation or any other law for the time being in force.
Clause 13.— This clause provides that where an advertisement issued, after
commencement of the proposed legislation, in violation of the provisions of clause 8, includes
any untrue statement or falsely describes any fact or is misleading, every person who
authorised the issue of such advertisement shall be liable to a penalty which may extend to
fifty lakh rupees, without prejudice to proceedings for prosecution under the provisions of
the proposed legislation or any other law for the time being in force.
Clause 14.— This clause provides that whoever, commits an offence under the proposed
legislation for which no penalty has been specified elsewhere other than under Chapter III,
shall, be liable to a penalty which may extend to five lakh rupees and in the case of a society
or trust, with a penalty which may extend to ten lakhs rupees, without prejudice to proceedings
for prosecution or imposition of penalty under the provisions of this Act or any other law for
the time being in force.
 13
Clause 15.— This clause provides that any capitation fee or donation or any other
charges collected in contravention of the provisions of the proposed legislation, shall, be
liable to be confiscated, by an order made by the concerned State Educational Tribunal or
National Educational Tribunal, as the case may be, constituted under the provisions of the
Educational Tribunals Act, 2010, and the capitation fee or donation or any other charge
confiscated shall be dealt in such manner as may be prescribed by rules made by the Central
Government.
Clause 16.— This clause provides that all the matters (including the penalties leviable
under Chapter II of the proposed legislation shall be adjudicated by the concerned State
Educational Tribunal or the National Educational Tribunal, as the case may be, constituted
under the provisions of the Educational Tribunals Act, 2010.
Clause 17.— This clause provides punishment for contravention of the provisions of
the proposed legislation. It provides that without prejudice to any award of penalty by the
State Educational Tribunal or the National Educational Tribunal, if any person contravenes
or attempts to contravene or abets the contravention of the provisions of proposed legislation
or of any rules made thereunder, he shall be punishable with imprisonment for a term which
may extend to three years, or with fine, or with both.
It further provides that if any person fails to pay the penalty imposed by the State
Educational Tribunal or National Educational Tribunal or fails to comply with any of its
directions or orders, he shall be punishable with imprisonment for a term which shall not be
less than one month but which may extend to three years or with fine which shall not be less
than fifty thousand rupees but which may extend to five lakh rupees, or with both.
Clause 18.— This clause provides that no court shall take cognizance of any offence
under the proposed legislation, except on the complaint in writing of the person authorised
by the Central Government or by the State Government in that behalf or of a person authorised
by the concerned appropriate statutory authority and no court inferior to that of a Metropolitan
Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under
the proposed legislation. The rules made under the proposed legislation shall provide for the
persons so authorised to file complaints.
Clause 19.— This clause provides that every offence under clause 6 of the proposed
legislation alleging the demand of capitation fee shall be deemed as cognizable within the
meaning of the Code of Criminal Procedure, 1973 and notwithstanding anything contained in
the Code of Criminal Procedure, 1973, every offence (other than an offence under clause 6)
under the proposed legislation shall be deemed to be non-cognizable within the meaning of
the said Code.
Clause 20.— This clause provides that where an offence under the proposed legislation
has been committed by a society or trust, every person who at the time the offence was
committed was in charge of, and was responsible to, the society or trust for the conduct of
the business of the society or the trust, as well as the society or trust, shall be deemed to be
guilty of the offence and shall be liable to be proceeded against and punished accordingly.
It further provides that if he proves that the offence was committed without his
knowledge or that he exercised all due diligence to prevent the commission of such offence,
then such person shall not be liable to the punishment. It also provides that notwithstanding
anything contained in sub-clause (1), where any offence under the proposed legislation has
been committed by a society or trust and it is proved that the offence has been committed
with the consent or connivance of, or is attributable to, any neglect on the part of any
director, manager, secretary, trustee or other officer of the society or trust, such director,
manager, secretary, trustee or other officer shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly. It also explains the
expressions "society" and "director" used in this clause.
Clause 21.— This clause provides that where an offence under the proposed legislation
has been committed by an institution, every person who at the time the offence was committed
 14
was in charge of, and was responsible to, the institution for the conduct of the business of
the institution, as well as the institution, shall be deemed to be guilty of the offence and shall
be liable to be proceeded against and punished accordingly.
It further provides that nothing contained in this sub-clause shall render any such
person liable to any punishment provided in the proposed legislation, if he proves that the
offence was committed without his knowledge or that he exercised all due diligence to
prevent the commission of such offence. It also proved that where any offence under proposed
legislation has been committed by an institution and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to, any neglect on the part of
any governor, chancellor, director, trustee, manager, secretary or other officer of such
institution, such governor, chancellor, director, trustee, manager, secretary or other officer
shall also be deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Clause 22.— This clause provides bar of jurisdiction of civil court. It provides that no
court shall have jurisdiction to entertain any dispute or proceeding in respect of any matter
which the State Educational Tribunal or the National Educational Tribunal is empowered by
or under the proposed legislation to determine, and no injunction shall be granted by any
court or other authority in respect of any action taken or to be taken in pursuance of any
power conferred by or under the proposed legislation.
Clause 23.— This clause provides that when an institution is accused of having
committed an offence under clause 8 (concerning the making false claims through
advertisements or otherwise which are not based on facts or misleading), the burden of
proving that such institution has not committed such offence, shall be on the institution.
Clause 24.— This clause confers power on the Central Government and the State
Governments and the appropriate statutory authority to call upon any information concerning
the activities carried on by the institution or university as may be prescribed to enable that
Government or the appropriate statutory authority to carry out the purposes of the proposed
legislation from any technical educational institution or medical educational institution or
university.
Clause 25.— This clause provides that all sums realised by way of penalties under the
proposed legislation shall be credited to the Consolidated Fund of India.
Clause 26.— This clause provides a bar on application of the proposed legislation to
any minority institutions in certain cases. It provides that nothing contained in the proposed
legislation or the rules made there under shall affect the right of the minorities to establish
and administer educational institutions of their choice.
Clause 27.— This clause empowers the Central Government to make rules, by notification
in the Official Gazette, for carrying out the provisions of the proposed legislation. It further
specifies the matter for which the Central Government may make rules.
Clause 28.— This clause provides that the every rule made by the Central Government
shall be laid before each House of Parliament.
Clause 29.— This clause make provision for protection of action taken in good faith.
It provides that no suit or other legal proceeding shall lie against the Government or any
officer or authority or person exercising powers or discharging functions under the proposed
legislation, for anything which is in good faith done or intended to be done in pursuance of
the proposed legislation or any rule or order made thereunder.
Clause 30.— This clause provides that the provisions of the proposed legislation
shall be in addition to, and not in derogation of, the provisions of any other law for the time
being in force
Clause 31.— This clause provides for provisions for removal of difficulties. It provides
that if any difficulty arises in giving effect to the provisions of the proposed legislation, the
 15
Central Government, may, by order published in the Official Gazette, make such provisions,
not inconsistent with the provisions of the proposed legislation as may appear to it to be
necessary for removing the difficulty. It further provides that such order shall be made within
a period of three years from the date of commencement of the proposed legislation. It also
provides that every order made under this clause shall be laid, as soon as may be after it is
made, before each House of Parliament.
 MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 27 of the Bill empowers the Central Government to make, by notification in the
Official Gazette, rules for carrying out the provisions of the proposed legislation. Sub-clause
(2) specifies the matters in respect of which such rules may be made. These matters, inter
alia, include matters (a) any such other information to be contained in the prospectus under
clause (xii) of clause 5; (b) the manner in which capitation fee or donation or other charges
confiscated shall be dealt with under sub-clause (2) of clause 15; (c) the persons authorise to
file a complaint, before a court in respect of an offence under this Act on behalf of the Central
Government or State Government or concerned appropriate statutory authority, under sub-
clause (1) of clause 18; (d) the information concerning the activities carried on by the technical
educational institution or medical educational institution or university to be furnished
periodically or as and when required by the Central or a State Government or appropriate
statutory authority under clause 24; and (e) any other matter which is to be or may be,
prescribed or in respect of which provision is to be made by the Central Government by rules.
2. The rules made under clause 27 of the Bill, shall be laid, as soon as they are made,
before both the House of Parliament under clause 28 of the Bill.
3. The matters in respect of which rules may be made are matter of procedure and
administrative detail and it is not practicable to provide for them in the Bill itself. The delegation
of legislative powers, therefore, of normal character.

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 LOK SABHA

————

BILL
to provide for the prohibition of certain unfair practices in technical educational institutions,
medical educational institutions and universities and to protect interests of students
admitted or seeking admission therein and to provide for matters connected therewith
or incidental thereto.

————

(Shri Kapil Sibal, Minister of Human Resource Development)

GMGIPMRND—1851LS(S5)—21.04.2010.